[3][4] The relatively developed and fenced area is called the Subic Bay Freeport Zone (SBFZ).

The harbor faces the Zambales Mountains to the west and Subic Bay opens to the South China Sea.

An arsenal and ship-repair facility was established at Subic Bay in 1885 by the then colonial power, Spain.

[5] In early 1991, after the collapse of protracted negotiations, the Philippine Senate rejected terms for renewal of the base's lease.

Subic Bay was converted into a commercial zone largely through the efforts of some 8,000 residents of nearby Olongapo, under the leadership of mayor Richard Gordon, who wanted to protect and preserve the $8 billion worth of facilities and property from looting and destruction.

Subic was transformed and became a model for bases conversion into commercial use after the Cold War with blue chip companies like Coastal Petroleum and Fed Ex pumping in over $3 billion of investments, creating 70,000 jobs in the free port's first four years.

[6] It was host to the 4th APEC Leaders' Summit on November 24, 1996[7] and FedEx's Asia-Pacific hub, Asia-One, was located in Subic Bay for almost ten years.

[8][9] In 2013, Defense Secretary Voltaire Gazmin said that the Philippines intended to move military forces to the base in response to the territorial disputes in the South China Sea.

In 2017, negotiations with local government units next to the Subic Bay Freeport Zone expanded the fenced area.

The now-defunct Hanjin Philippines was the single biggest employer in the area prior to its bankruptcy in January 2019.

Attractions include beaches, an underwater aquarium, jungle survival tours, and duty-free shopping.

[23] Local races, such as the Philippine Touring Car Championship, Run What You Brung (RWYB) and Circuit Showdown were held there.